Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2006L01169 Regulations Not in force Legislative Instrument

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Explanatory STATEMENT

 

Select Legislative Instrument 2006 No. 78

 

Minute No. 6 of 2006 - Parliamentary Secretary to the Minister for Health and Ageing

 

Subject - Industrial Chemicals (Notification and Assessment) Act 1989

 

 Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1)

 

Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act) provides in part that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.  

 

The object of the Act is to provide for a national system of notification and assessment of industrial chemicals for the purposes of aiding in the protection of the Australian people and the environment; providing information and making recommendations about industrial chemicals to Commonwealth, State and Territory bodies; giving effect to Australia’s obligations under international agreements; and collecting statistics in relation to these chemicals.

 

Subsection 110(1) of the Act provides that the regulations may prescribe fees for specified services.  Subsections 110(2) to (6) set out details for when fees are due, the payment schedules and other arrangements.  The fees for services defined in section 110 are prescribed in the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations).

 

The purpose of the Regulations is to increase all fees and charges for the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for 2006-07, introduce application and renewal fees for the NICNAS controlled use permits, and specify the prescribed information required on applications for one type of controlled use permit (export only permits). 

 

NICNAS operates on a fee for service basis for the assessment of new chemicals and applies a levy (NICNAS Registration) across the broader base of industry to fund all other programs such as compliance activities and the assessment of existing chemicals. Without sufficient funding including adequate operational reserves, NICNAS will be unable to satisfactorily discharge its mandatory obligations under the Act. In addition, new chemical assessment activity will not meet the Government’s cost recovery policy.  The proposed increase in existing fees and charges would result in a reserve balance position that meets the agreed operational reserve target. 

 

NICNAS fees and charges will be increased by 3.9% (rounded to the nearest dollar) commencing 1 July 2006.  The last increases to new chemical fees and charges were made on 1 July 2005.  The fee increase will enable the NICNAS to continue to operate on a full cost-recovery basis. 

 

Division 1C of Part 3 of the Act establishes a controlled use permit system.  A controlled use permit is an alternative to the assessment certificate system in respect of industrial chemicals that are low risk to occupational health and safety, public health and the environment because of their highly controlled use, handling and exposure.  Introduction of a chemical under a controlled use permit must be of low risk to workers, the public and the environment. A person who makes an application for a controlled permit under this Division 1C will also have to meet relevant safeguards. Subsection 110(1) of the Act provides that the regulations may prescribe fees for application and renewal of controlled use permits.  No such fees are currently prescribed and the proposed regulations will introduce such fees.

 

Details of the Regulations are set out in the Attachment.

 

The fee increase was arrived at by agreement with the NICNAS Industry Government Consultative Committee (IGCC).  Stakeholder consultation for the controlled use permit was through NICNAS’s established consultative forums, i.e. the IGCC, the Community Engagement Forum and States/Territories Memorandum of Understanding Committee.  Consultation with the community, industry and government was conducted prior to the passage through Parliament of amendments to the Act in August 2004.  A discussion paper specifically on the Controlled Use Permit (Chemicals for Export Only) proposal was released for public comment in the Chemical Gazette in December 2004 and a final report and recommendations was published in May 2005.

 

The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.

 

The proposed Regulations would be a legislative instrument for the purposes of the Legislative Instruments Act 2003. 

 

Regulations 1 to 3 and Schedule 1 to the Regulations commence on the day after registration. Schedule 2 will commence on 1 July 2006. The reason for the delayed commencement of Schedule 2 is to align the date on which NICNAS fees and charges are revised with the new financial year.

 


ATTACHMENT  

 

Details of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1)

 

Regulation 1 would provide for the Regulations to be referred to as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1).

 

Regulation 2 would provide for the regulations 1 to 3 and Schedule 1 to commence on the day after they are registered and Schedule 2 to commence on 1 July 2006.

 

Regulation 3 would provide for Schedules 1 and 2 to amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations).

 

Schedule 1 – Amendments

 

Item [1] – New prescribed information for ‘export only’ permits

This item introduces new prescribed information for an application for one type of controlled use permit (an export only permit).  The prescribed information enables the regulator to confirm that the chemical will be used in a highly controlled manner and that it poses low risk to workers, the public and the environment and meets all safeguards built into the permit system. 

 

Item [2] – New application and renewal fee

This item introduces a new application fee of $3204 and a renewal fee of $633 for controlled use permits. 

 

 

Schedule 2 – Increase in fees

 

Item [1]

This item amends regulation 13 of the Principal Regulations to increase the fees specified in subregulations 13(2), 13(2A), 13(3) and 13(4) by 3.9% (rounded to the nearest dollar).  These fees relate to New Chemical certificate assessment and self-assessment categories. 

 

Proposed Item [2]

This item amends Schedule 2 to the Principal Regulations to increase the New Chemical assessment fees and charges in the Schedule by 3.9% (rounded to the nearest dollar).  This increases all fees and charges specified in the Schedule.

 

 

 

 

Overview

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1) were enacted to address the need for increased funding and the introduction of application and renewal fees for the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) controlled use permits. These regulations amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 to increase all fees and charges for NICNAS for the 2006-07 financial year, introduce fees for the application and renewal of controlled use permits, and specify the prescribed information required on applications for export only permits. The Industrial Chemicals (Notification and Assessment) Act 1989, enacted by the Parliament of Australia, established NICNAS to provide a national system for the notification and assessment of industrial chemicals to protect public health and the environment. The regulations were developed following extensive consultation with industry, community, and government stakeholders and aim to ensure that NICNAS can meet its obligations under the Act and achieve cost recovery for new chemical assessments.

Scope and Application

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1) is an instrument that modifies the existing Industrial Chemicals (Notification and Assessment) Regulations 1990 to implement changes in fees and charges under the Industrial Chemicals (Notification and Assessment) Act 1989. The Act applies to any person or entity that imports, manufactures, or supplies industrial chemicals in Australia, aiming to protect public and environmental health by assessing the risks associated with these chemicals. The Act’s jurisdiction is national, covering all states and territories within Australia. The Act allows for the introduction of fees and charges through subordinate instruments, as outlined in Section 110, and these regulations reflect the necessary adjustments to ensure the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) can operate effectively and sustainably. The amendments increase the fees for new chemical assessments and introduce fees for controlled use permits, which are applicable for chemicals that are deemed low risk due to their controlled use. Additionally, the regulations specify the information required for applications of certain controlled use permits, particularly for chemicals intended for export only. The fee increase, agreed upon with the NICNAS Industry Government Consultative Committee, is designed to align with the Government’s cost recovery policy and maintain operational reserves for NICNAS.

Key Provisions

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1) propose several key changes under the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act). Regulation 1 designates these as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1). Regulation 2 sets the commencement dates for the regulations and schedules, with regulations 1 to 3 and Schedule 1 commencing the day after registration, and Schedule 2 starting on 1 July 2006. Regulation 3 amends the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations). Under Schedule 1, Item [1] introduces new prescribed information for applications for 'export only' permits, ensuring that the chemicals are used in a controlled manner and pose low risk to workers, the public, and the environment. Item [2] introduces new application and renewal fees for controlled use permits: an application fee of $3204 and a renewal fee of $633. The Act imposes several obligations on parties involved with industrial chemicals. For example, it mandates that chemicals assessed as low risk under a controlled use permit system must meet specified safeguards. The Act also requires entities to comply with prescribed fees and charges, as outlined in the regulations. Furthermore, the Act obligates the regulator to ensure that chemicals introduced under controlled use permits do not pose undue risks to health and safety. The regulations also introduce penalties and consequences for non-compliance. Breaches of the Act or the regulations could lead to civil or criminal penalties, depending on the nature and severity of the breach. For instance, failure to pay prescribed fees or provide required information could result in fines or other penalties as stipulated in the Act. The specific penalties are not detailed in the provided text but are typically aligned with the severity of the breach and the potential harm caused. In summary, the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 1) aim to enhance the regulation of industrial chemicals by introducing new fees for controlled use permits, increasing existing fees, and specifying required information for export-only permits. These changes are designed to ensure that NICNAS can effectively manage its obligations under the Act, including protecting public and environmental health while maintaining financial sustainability.

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